Wandsworth and Richmond propose pension fund merger

The government has launched a consultation on radical proposals to merge the pension funds currently administered by Wandsworth and Richmond Councils in London.

The move would see the transfer of all pension fund assets, liabilities and responsibilities from Richmond to Wandsworth, which would manage pensions for employees of both councils.
The councils say that the move is intended to mitigate unintended consequences of new shared service delivery arrangements being implemented between the two boroughs.
A statement by the Department for Communities and Local Government said: “The members’ pension benefits are set out in the existing regulations and will not be changed. “Wandsworth already provides Richmond’s fund administration, and member’s benefits and contributions are set nationally and will not change.”

The two councils have met with DCLG officials to discuss the move, and have provided background information in support of their request.
To help the move, the department has published a new set of regulations under the Public Service Pensions Act 2013.
The regulations say that on the merger date, possibly as early as 1 October, the councils must publish a statement setting out the allocation of assets and liabilities between each borough.
Any pension payments received by Richmond prior to the merger must be paid into the new merged fund.
The consultation on the merger closes on 15 September.

Both councils have already agreed membership of a new joint pensions board to oversee the fund, with three Richmond and six Wandsworth councillors as members.
The London boroughs of Wandsworth and Richmond are currently entering into shared staffing arrangements in which most staff will be jointly employed by both boroughs.
Around 3500 staff will be involved, with the aim of saving around £10 million per year for each council.

Both boroughs have appointed Barnet Waddingham as their actuary to advise them on their current funds and the joint fund.